The Twelve Days of Taxmas – Qualified Improvement Property
As Christmas approaches, Klatzkin is putting a twist on a holiday classic. But rather than filling your head with drummers drumming and golden rings, we’re focused on providing important tax insights through “The Twelve Days of Taxmas” blog series that could help minimize your tax liability.
On the third day of Taxmas, my accountant gave to me a technical correction to the definition of Qualified Improvement Property.
The change helps save money because due to changes in the CARES Act, businesses are now allowed to depreciate Qualified Improvement Property over a 15-year life instead of a 39-year life. By leveraging this shorter life, the improvement would also qualify for 100% bonus depreciation write off. This means Princeton and Trenton-area businesses can recognize 100% of the current year’s improvement cost and immediately recoup the investment.
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©2020 Klatzkin & Company LLP. The above represents our best understanding and interpretation of the material covered as of this post’s date and should not be construed as accounting, tax, or financial advice. Please consult your tax advisor concerning your specific situation.